Dynamics of Remittances and Household Economic Resilience ofIndonesian Migrant Workers (PMI) in East Java

Abstract

This study explores the role of remittances as an instrument of household economic resilience in ten major sending
districts for Indonesian Migrant Workers (PMI) in East Java. Although remittances contribute significantly to
foreign exchange at a macro level, there is a research gap regarding how remittance dynamics respond to local
economic vulnerabilities and their effectiveness in supporting the achievement of SDG 1 (No Poverty) by
strengthening household social safety nets. The method used is descriptive qualitative with a collective case study
design in Ponorogo, Blitar, Malang, Tulungagung, Banyuwangi, Madiun, Kediri, Trenggalek, Magetan, and
Jember. Primary data were collected through in-depth interviews, while secondary data were obtained from the
Statistics Indonesia (BPS) and the Indonesian Migrant Workers Association (BP2MI) for the 2024 period. Data
validity was tested through source and technique triangulation using the Miles and Huberman model analysis. The
results show that remittances are not merely supplementary income but also a crucial economic instrument for
meeting basic needs and household liabilities. The novelty of this research lies in its findings regarding the shift
in the use of remittances from passive consumption to productive investments, such as micro-enterprises and
agricultural modernization, which aligns with SDG 8 (Decent Work and Economic Growth) in creating a multiplier
effect for the regional economy. This research contribution provides a foundation for more operational financial
inclusion policies to reduce transaction costs and access gaps, in line with SDG 10 (Reduced Inequality) target,
thereby strengthening rural economic resilience in a sustainable manner